Didier Sornette: Use

Didier Sornette is French scientist. Explore interesting quotes on use.
Didier Sornette: 54   quotes 0   likes

“Indeed, the frequency of crashes in the Monte Carlo simulations was much smaller than the frequency of crashes in the real data: if one of the most frequently used benchmarks of the industry is incapable of reproducing the observed frequency of crashes, this indeed means that there is something to explain that may require new concepts and methods.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 9, Prediction Of Crashes And Antibubbles, p. 327.

“At another level, market crashes constitute beautiful examples of events that we would all like to forecast. The arrow of time is inexorably projecting us toward the undetermined future. Predicting the future captures the imagination of all and is perhaps the greatest challenge.”

Didier Sornette

Preface, p. xvi.
Why Stock Markets Crash - Critical Events in Complex Systems (2003)

Beauty , Imagination , Time , Future

“Profiting from being in the minority leads to interesting paradoxes. Rather diabolically, if all traders use the same set of rules, they will end up doing the same thing at the same time and cannot therefore be in the minority.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 4, Positive Feedbacks, p. 115

Time

“The assumption of perfectly rational, maximizing behavior won out until recently in the art of modeling, not because it often reflects reality, but because it was useful.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 5, Modeling Financial Bubbles And Market Crashes, p. 138.

Art , Behavior , Reality

“The point is that humans are rarely at their best when they use rational reasoning.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 4, Positive Feedbacks, p. 106.

“The concept of a random walk is simple but rich for its many applications, not only in finance but also in physics and the description of natural phenomena. It is arguably one of the most founding concepts in modern physics as well as in finance, as it underlies the theories of elementary particles, which are the building blocks of our universe, as well as those describing the complex organization of matter around us.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 2, Fundamentals Of Financial Markets, p. 38.

Nature , Universe

“Indeed, the financial world is such that any insight is almost immediately used to trade for a profit.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 5, Modeling Financial Bubbles And Market Crashes, p. 136.

World

“Knowledge is encoded in models. Models are synthetic sets of rules, and pictures, and algorithms providing us with useful representations of the world of our perceptions and of their patterns.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 5, Modeling Financial Bubbles And Market Crashes, p. 134.

World , Knowledge